Markets surge in late trading on report of new U.S. treasury secretary

North American markets jumped late in the session Friday after NBC News reported that U.S. president-elect Barack Obama would nominate New York Federal Reserve Bank president Tim Geithner as treasury secretary.

The Dow Jones industrial index, S&P 500, Nasdaq and S&P/TSX composite index all broke out around 3 p.m. ET and climbed steadily until the close.

The indexes gained from five per cent to 6.5 per cent, after swinging above and below Thursday's close in early trading.

Toronto's S&P/TSX index was up 430.6 points, or 5.6 per cent, to 8,155.39. The Dow Jones index was up 494.1 points, or 6.5 per cent, to 8,046.42. The S&P 500 rose 6.3 per cent and the Nasdaq was up 5.2 per cent.

The benchmark TSX index had been far up and slightly down earlier in the session.

Toronto-Dominion Bank shares fell $2.27 to $41.30 after a $6.36 drop Thursday, prompted by the announcement of charges it will take related to the global credit crunch.

On the TSX, the gold sub-index was up more nearly 24 per cent as the gold price added more than $43 US an ounce to $791.70.